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Question 44

All of the following were features of the financial crisis of 2008 except one. Which ONE is the exception?

Options:

A.

A rise in the volume of mortgage defaults

B.

A chronic shortage of liquidity in the banking system

C.

A severe contraction in inter-bank lending

D.

A sharp fall in rate of interest on inter-bank lending

Question 45

What international convention regulates banking?

Options:

A.

Basel 3

B.

GATT

C.

G20

D.

Competition Act

Question 46

A promoter has arranged a large outdoor concert. All the costs are fixed and there are no variable costs associated with the number of spectators attending.

Which of the following statements about the profit maximizing price is FALSE?

Options:

A.

It is the price at which Marginal Revenue is zero

B.

At this price, the price elasticity of demand will be unity (i.e. equal to 1)

C.

This price will ensure the promoter covers the cost of the concert

D.

This is the price which maximizes the revenue the promoter earns from the concert

Question 47

Which of the following have been recommended in order to prevent a repeat of the 2008 financial crisis?

Options:

A.

Higher capital adequacy ratios for commercial banks

B.

A reduction in the required liquidity ratio for commercial banks

C.

The merging of retail and investment banking

D.

The purchase of bank shares by the government

Page: 11 / 17
Exam Code: BA1
Exam Name: Fundamentals of Business Economics
Last Update: Dec 22, 2024
Questions: 468
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